Amid the harsh operating environment, FMDQ Securities Exchange’s activation of market penetration strategy for securities-related services attracted a total of 21 securities valued at about ₦411 billion in 2020.
At the exchange virtual 9th yearly general meeting held at the weekend, the Group Chairman, Dr. Kingsley Obiora, said 2020 was a landmark year for FMDQ, as the company transformed into a Group structure, with FMDQ Group becoming a non-operating Holding Company registered by the Securities and Exchange Commission (SEC), with three SEC-registered capital market subsidiaries.
According to him, the regulated subsidiaries, which include FMDQ Securities Exchange Limited, FMDQ Clear Limited, and FMDQ Depository Limited, further enhanced the consolidation of its business model.
Obiora, who was represented by the Group Vice Chairman of the Board Jibril Aku said the subsidiaries also transformed FMDQ to Africa’s first vertically integrated FMI group, as well as help de-risk the markets across the full capital market value chain, from pre-trade, trade to post-trade.
He said two new subsidiaries, FMDQ Private Markets Limited and iQx Consult Limited were operationalised in 2020 to extend the opportunities in the capital market to private companies, amongst others ensure operational efficiency and build resilience in the FMDQ Entities through technology and digitization.
He said FMDQ Exchange’s Securities Admission business absorbed eighty 82 securities, with a total value of ₦2.07 trillion, its platform.
He added that the Exchange activated its equity market development project during the year, with relevant activities commencing in earnest towards full operationalisation of the market.
Chief Executive Officer of FMDQ, Bola Onadele while speaking to the Group’s outlook for 2021 and beyond said the Group will continue to work assiduously to deliver innovative and critical market development initiatives in collaboration with its stakeholders.
He listed some of the initiatives market participants can look forward to in the near term to include the launch of FMDQ Exchange’s fixed income futures products, having received the SEC’s approval for the derivatives market rules in February 2021, and the activation of the Repo market with collateral management service.
Onadele assured stakeholders of a renewed commitment to channel adequate resources towards achieving the set objectives for the markets under its purview while continuing to work assiduously towards the swift activation of robust derivatives and equity markets, as well as consolidating the Group’s debt markets leadership position.
He said: “FMDQ Group is strategically positioned to provide registration, listing, quotation & noting services; integrated trading, clearing & central counterparty, settlement, risk management for financial market transactions; and depository of securities; as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets
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